Coronavirus (COVID-19): KEY THEMES AND LEGAL SUPPORT

Whatever business challenges arise as a result of the spread of novel coronavirus (COVID-19), we are actively monitoring risks and responses, and are here to help. Key specialist contacts plus some of the key emergent themes we are seeing are provided below. Please get in touch.

Business and legal issues impacting multiple industries:

We have prepared a Payment Disputes Guide to provide an overview of the key stages relevant to most payment disputes and to signpost some points it will be helpful for clients to consider along the way.

The purpose of this ‘toolkit’ is to provide guidance on specific questions that may arise during the Coronavirus crisis in relation to contracts governed by English law, and the points to look out for and consider. It does not constitute legal advice.

In the worsening Coronavirus pandemic many contractual commitments will now be difficult, if not impossible, for businesses to fulfil, especially given recent government advice on travel and social distancing. Find out when the effect of frustration applies.

For a rapid response on any other Commercial Contracts issues, get in touch

Nick Ashcroft

BEIS and CMA have both signalled a relaxation to competition law, with exemptions and a pragmatic approach to enforcement. But as the CMA says, this is not a "free pass". We have set out the limits on what has been permitted and our views on the care businesses still need to take.

Build UK have recently published Version 3 of their Site Operating Procedures for dealing with the risk of Coronavirus at construction sites. This is essential reading for anyone in the construction sector. Whilst these procedures are expressed to only apply to England (as it is based on Public Health England guidance) they are likely to be of practical assistance in other UK jurisdictions provided the business carefully checks their own jurisdiction's requirements are not being breached.

The latest guidance from the UK Government does not require construction sites or businesses to close but does require that any employer who has staff on site must ensure that employees are able to follow Public Health England guidance. This includes maintaining a 2 metre distance from others and following hygiene advice. Employees are permitted to travel to and from work, but only where the work absolutely cannot be done from home.

The latest guidance from the UK government does not require construction sites or businesses to close but does require that any employer who has staff on site must ensure that employees are able to follow Public Health England guidance. Read a summary of the key points in this article.

We are seeing an increasing number of client queries regarding rights and remedies available under construction contracts and, in particular, whether Covid-19 can give rise to an extension of time to completion and/or claims for associated loss and expense. Here we consider the position by reference to two of the most common standard forms – the JCT Design & Build 2016 and NEC4 2017.

For a rapid response on any other Construction & Engineering issues, get in touch

Nancy McGuire

Coronavirus response - introducing flexiblity to directors' duties? In light of Covid-19, the UK government recently announced its intention to temporarily suspend the offence of wrongful trading by directors of UK companies. This will inevitably have a wide-ranging effect on both directors and creditors.

The outbreak of coronavirus (COVID-19) is unprecedented and will have a significant impact on the ability of companies to run their AGMs this year. Contingency planning is crucial and and companies should closely monitor further government direction and guidance. This update provides some more information on the considerations around AGMs.

The 2019 novel coronavirus (COVID-19) pandemic is forcing both management and boards of directors in broker firms and corporate finance advisors to navigate uncharted and stormy seas. Explore some of the key issues that boards and senior management in broker firms and corporate finance advisors should be considering.

Coronavirus is forcing both management and boards of directors and partners in asset managers and private equity houses to navigate unchartered and stormy seas. Some of the key issues that they should be considering are: Appointment of a crisis management team; Board continuity; Business as usual compliance.

For a rapid response on any other Corporate Governance issues, get in touch

Will Chalk

Unsurprisingly, there is only one story that the media are interested in just now. Saturation coverage of the national and global picture has driven just about every other story off the front page, and the home page. However, that does not necessarily mean that businesses can rest easy in terms of reputational risk.

For a rapid response on any other Crisis Management and Reputation Protection issues, get in touch

David Engel

With the outbreak of Covid-19, businesses are facing a completely new landscape when it comes to the handling of personal data. In this article, we highlight some of the key data protection issues that businesses may be facing and consider the best practices to ensure continued compliance in accordance with the recent ICO and EDPB guidance.

For a rapid response on any other Data Protection issues, get in touch

The AG Litigation COVID-19 task force team have prepared a business support checklist to help you deal with the current unprecedented conditions impacting everyone around the world. The team have looked at the most immediate business critical issues and then looking ahead over the coming months what ways you can protect your operations whilst it recovers.

Governments around the world are scrambling for technological solutions which might facilitate a relaxation of the current lockdown measures. One idea which is being explored is the use of apps which can alert users when they have come into contact with someone who may be carrying the virus.

The Coronavirus (Scotland) Bill was introduced on 31 March and passed stage 3 at a meeting of the Scottish Parliament on 1 April. It will come into force after receiving royal assent and is to be known as the Coronavirus (Scotland) Act 2020 ("the Act"). The Act makes a number of changes to current legislation including laws dealing with evictions from residential tenancies; bankruptcy; termination of commercial leases and the running of the Scottish court system during a global pandemic. The key changes are set out in this briefing note.

The Covid-19 Pandemic is likely to result in a surge of claims under Section 75 Consumer Credit Act. It will throw up unique factual and legal issues, which we can help you to navigate, providing you with strategic advice and additional flexible resource to enable you to respond to claims quickly, consistently and efficiently.

The spread of COVID-19 presents an unprecedented challenge to the English judicial system and legal practitioners. This note sets out what we know so far (19 March 2020) about how the courts are responding to the latest government guidance and includes practical information to help the increasing number of court users who are working remotely.

Whether it be due to workers not being able to attend work, delays in shipment or cancellation of major events, the virus is starting to have huge commercial implications across many industries. Can a force majeure clause help a party to avoid contractual liability for losses?

For a rapid response for guidance on disputes arising as a result of Coronavirus, get in touch

Michael Barnett

As set out by the Treasury in its latest update, there are three main aspects of the revised rules announced on 29 May 2020: flexible furloughing; closure to new entrants from July; and changes to employer costs

It's been another big week, we've seen the government's updated guidance, the ICO guidance on monitoring and the announcement from the chancellor on extension of furlough. So where are we now? This webinar covers the latest Government review as we enter the first stage of lifting the lockdown.

4 May 2020

The Court of Appeal in R has upheld the legality of the Right to Rent Scheme (Scheme) that obliges landlords to check the immigration status of tenants. This means that rent checks must continue to be carried out to confirm that prospective tenants have a right to rent before a tenancy is entered into.

This is the second litigation involving the furlough scheme in the insolvency context, following on from Re Carluccio's (in administration). Please refer to our note on Carluccio's for background reading on how the furlough scheme weaves into insolvency law.

In the first litigation involving the Furlough scheme, the court in Re Carluccio's (in administration) ruled on how the administrators can lawfully give effect to furlough arrangements with the employees who have agreed to the variation of their employment contract.

Our initial view of the HMRC guidance is positive, in that the process around designating employees as 'furloughed' is relatively light-touch (which seems sensible in the circumstances) and on the basis that there is additional support for employers in terms of being able to claim back employer NICs and minimum pension contributions on top of the 80% monthly employment costs.

We recommend that employers continue to keep matters under review including any updated government guidance as well as NHS advice on this matter. Given the maximum refund payable to employers is two weeks' worth of SSP, if you have an enhanced sickness policy you will have to cover the excess. We recommend that all working-from-home records are kept securely and properly maintained.

What can companies do to safeguard their employees, maintain business resilience and minimise disruption? We review some of the strategic and practical steps that employers can take in safeguarding employee health, maintaining business resilience and minimising disruption.

We look at some of the issues that employers may face in light of the increasing spread of Coronavirus in relation to their workers. What if employees do not wish to go to work because of the fear of Coronavirus?; If the employee is suffering from Coronavirus, do we have to pay them?; Can an employer suspend an employee suspected of having coronavirus and, if so, what pay are they entitled to?

For a rapid response on any other Employment issues, get in touch

Michael Leftley

Now more than ever asset managers will need to demonstrate how they are meeting the market's expectations in relation to ESG. COVID-19 will undoubtedly shine a spotlight on asset managers. Access the podcast to find out more...

COVID-19 has seen a number of emergency funding measures announced by the UK Government to support businesses through this difficult time. In the guide below, we set out what's available, how, when and to whom. If you are a business seeking help in accessing the schemes, or a lender who needs help in obtaining accreditation for, delivering or implementing CLBILS, CBILS, BBLSS, CCFFS or Future Fund, please get in touch.

With the recent announcement of Nicola Sturgeon's proposed relaxation of the Covid-19 lockdown restrictions, the Scottish Government has turned its attention to providing sector-specific financial support to assist the house building industry.

On 28 March 2020, the Government proposed certain insolvency law reforms in response to the COVID-19 crisis, including a temporary suspension of wrongful trading provisions for company directors. To read more about the measures, click on the link above.

Further to our previous briefing, the Coronavirus Large Business Interruption Loan Scheme (CLBILS) has been launched this morning which will be welcome news for mid-market businesses. This briefing gives an overview of the details that have been released about the CLBILS so far and will be updated as further details are released.

Coronavirus response - introducing flexiblity to directors' duties? In light of Covid-19, the UK government recently announced its intention to temporarily suspend the offence of wrongful trading by directors of UK companies. This will inevitably have a wide-ranging effect on both directors and creditors.

The Government have announced changes to the Coronavirus Business Interruption Loan Scheme (CBILS) to make the scheme more accessible to SME businesses. In addition, they have announced that a scheme for mid-market businesses, the Coronavirus Large Business Interruption Loan Scheme (CLBILS), is being established with further details to follow later this month. This update looks at the changes made to the CBILS and what we know about the CLBILS so far.

Despite such turbulent and unparalleled times, it is important that directors are mindful that their duties towards the company and its shareholders may switch to company creditors, and should therefore seek advice to avoid breaching those duties. Read more in our latest update.

23 March 2020

Last week the Government announced a number of measures to provide financial support to businesses struggling with the impact of COVID-19, including two new Government-backed funding schemes. Find out which businesses are eligible for, and how to access the financial support on offer. Read more about the measures and what else businesses need to be thinking about in terms of their financings during these difficult times.

Amanda Gray

Ged Barnes

The FCA has announced a series of initiatives, proposed measures and guidance for insurance firms and policyholders. In this briefing we consider the key questions insurance firms might have and how they might address the challenges ahead.

For many challenger banks, COVID-19 will be their first true financial crisis. Those who are proactive and meet the challenges head on will likely come out of the crisis stronger. The current regulatory regime was designed to address the issues that arose out of the 2008 financial crisis. COVID-19 will ultimately raise many new and as yet unknown challenges. This Financial Regulation Insight summarizes the key issues facing challenger banks in the current crisis before taking a more in-depth look at a selection of some of them.

The past 18 months have seen operational resilience take centre stage with UK regulators, to help achieve their core objectives – the FCA's concern to ensure consumers are protected and markets continue to function well, and the PRA's concern with ensuring the stability of the UK financial system through its focus on the safety and soundness of the firms it regulates.

The Covid-19 Pandemic is likely to result in a surge of claims under Section 75 Consumer Credit Act. It will throw up unique factual and legal issues, which we can help you to navigate, providing you with strategic advice and additional flexible resource to enable you to respond to claims quickly, consistently and efficiently.

The FCA's rules on creditworthiness and the assessment of a customer's ability to afford the lending they have applied for remain in play. Whilst it is reasonable to assume that consumer borrowing needs may increase and the government is likely to want lenders to help as much as possible, it would be wrong to assume this can be achieved by a more relaxed approach to creditworthiness assessments when customers are applying for new borrowing. Unless and until the FCA clearly explain that it is prepared to flex its rules in this area – which we think is incredibly unlikely given the journey we have been on to get to where we are - it must be assumed that they are full in force and the regulatory expectation is that firms will fully adhere to them.

In light of the exceptional circumstances of COVID-19, the FCA published guidance for firms on 20th March and published updated guidance on 25th March. In addition, on 25th March the EBA published a statement on consumer and payments issues in light of COVID-19 reminding firms to grant any temporary payment measures in compliance with EU law (including the Mortgage Credit Directive (2014/17/EU) and the Consumer Credit Directive (2008/48/EU)).

In a bid to help prevent the spread of Coronavirus, the finance and payments industry, in conjunction with the retail sector, are increasing the maximum per transaction limit for contactless payments to £45, enabling more transactions to take place without customers having to enter their PIN. This article provides more details about these measures.

There are a number of options available when offering forbearance to customers. Lenders may choose simply to enter into a new agreement. Alternatively they may choose to vary the existing agreement by entering into a modifying agreement or simply provide forbearance by waiving their contractual rights on a temporary basis.

For a rapid response on any other Financial Regulation issues, get in touch

It's been another big week, we've seen the government's updated guidance, the ICO guidance on monitoring and the announcement from the chancellor on extension of furlough. So where are we now? This webinar covers the latest Government review as we enter the first stage of lifting the lockdown.

The government has produced guidance to help ensure safety during the pandemic covering a range of workplaces. This includes guidance for offices, contact centres, operations rooms and similar workplaces.

The government has produced guidance to help ensure safety during the pandemic. The guides cover a range of workplaces including those working in or from a vehicle such as couriers, mobile workers, lorry drivers, on-site transit and field forces.

The government has produced guidance to help ensure safety during the pandemic. The guides cover a range of workplaces including restaurants offering takeaway or delivery and the food services provided by businesses.

The Health and Safety Executive (HSE) has provided a series of updates today arising in relation to Covid-19, including its expectations from duty holders and its plans for maintaining regulatory oversight.

The Coronavirus Act 2020 and the Health Protection (Coronavirus, Restrictions (England)) Regulations 2020 came into force on 25 and 26 March 2020 respectively. The legislation was passed in order to enforce compliance with Government guidance designed to restrict the movement of people with the aim of limiting the spread of Covid-19 in the UK.

The latest guidance from the UK Government does not require construction sites or businesses to close but does require that any employer who has staff on site must ensure that employees are able to follow Public Health England guidance. This includes maintaining a 2 metre distance from others and following hygiene advice. Employees are permitted to travel to and from work, but only where the work absolutely cannot be done from home.

The latest guidance from the UK government does not require construction sites or businesses to close but does require that any employer who has staff on site must ensure that employees are able to follow Public Health England guidance. Read a summary of the key points in this article.

A company's response to Coronavirus will be key in how employees will feel and react to the issue. The approach to risk management in response to what is a developing situation must be dynamic, with regular review of control measures in light of changes in the risk of transmission. It is therefore essential that businesses put in place clear and effective means of communication with staff and evidence that the business is considering staff welfare and responding in a way that puts employee safety at the forefront of the decision making.

For a rapid response on how to respond and prepare a business response plan in relation to Coronavirus, get in touch

In light of the recent announcement from the Health Secretary to write off £13.4 billion of NHS debt, this article takes a look at the structures behind NHS funding, how this move will be practically implemented and any immediate effects.

In the UK electricity capacity market, once generators have signed a Capacity Agreement, it legally binds them to provide electricity capacity as and when called upon to do so. The scheme as currently drafted does not allow for any wriggle room on deadlines due to events like the Covid-19 pandemic.

For a rapid response on any other IPE issues, get in touch

David Hartley

On 20 March the Pensions Regulator issued guidance suggesting that contributions due under the schedule of contributions could be deferred in these unprecedented circumstances, but only subject to careful consideration by the trustees.

Marnix Elsenaar

Business interruption insurance is often a critical component of a company's continuity plan. As the government introduces more stringent measures to delay and flatten the peak of covid-19, businesses are facing significant financial losses due to interference with their revenue streams. This article sets out some of the factors which will be relevant to whether your policy covers your business interruption losses from an English law perspective.

Policyholders should take steps now to check their insurance policies for relevant coverage and to ensure compliance with policy terms. This may include notification obligations and conditions requiring compliance with guidelines issued by relevant governments or other bodies. Policyholders should also be alive to the limits of their cover and any potentially relevant exclusions.

For a rapid response on any other Policyholder Insurance issues, get in touch

The dramatic consequences of the coronavirus (COVID-19) pandemic is forcing all involved in the management of professional services firms to confront significant financial issues as a result of the sharp decline in business activity across the UK and global economies. There currently is no "new normal".

For a rapid response on any other Professional Practices issues, get in touch

William Wastie

We have summarised the government guidance on how public sector contracts should respond to the Covid-19 pandemic – including urgent awards and protection for suppliers. This provides practical and useful guidance to authorities and suppliers alike in dealing with current challenges.

As the UK's response to the global COVID-19 coronavirus outbreak escalates, public authorities in the UK may find themselves under pressure to make short notice awards in order to urgently procure critical services, works or supplies of key products. In recent days, the Health Secretary himself made an urgent plea for manufacturers to turn production lines over to ventilator production for the NHS, promising "if you produce a ventilator then we will buy it – no number is too high".

For a rapid response on any other Public Procurement issues, get in touch

Jonathan Davey

Bill Gilliam

In this 3-part webinar series, we were joined by Savills, Colliers, RivingtonHark and Knight Frank to give you a market update and answer the 'most asked questions' the Housing, Student Accommodation, Senior Living, Hotel, Retail, Logistics, Office and Industrial sectors.

From 13 May 2020, anyone in England can move home but they should follow amended guidance published by the Ministry of Housing, Communities and Local Government. Home buyers and sellers were previously told to delay completion until the end of lockdown.

The Court of Appeal in R has upheld the legality of the Right to Rent Scheme (Scheme) that obliges landlords to check the immigration status of tenants. This means that rent checks must continue to be carried out to confirm that prospective tenants have a right to rent before a tenancy is entered into.

So far the office sector seems to have fared better than the retail and hospitality sectors which have taken the brunt of the chaos caused by COVID-19. However investors, lenders, and developers invested in the sector would do well to take early measures to manage and mitigate their risks, whether that is in the context of current occupiers, ongoing projects or managing assets secured to lenders.

The coronavirus crisis presents unique set of challenges for the development industry with potentially long term implications. A swift and creative approach will be required by the Scottish Government and local authorities to ensure that planning regulatory tools work to support the development industry and ensure wider economic growth.

Covid-19 is having an unprecedented impact on all sectors, but few have been so quickly and significantly affected as the Hotels Sector. Only a few weeks ago, most couldn't even have conceived of circumstances that could require every hotel in the country to close at the same time. We have been advising our Hotels clients on a variety of issues that have arisen as a result of Covid-19

We highlight some of the key issues that may arise from a real estate perspective which includes: landlord and tenant considerations; lease termination; lease obligations and consider some practical steps that businesses can take to maintain business resilience in a situation which is rapidly evolving.

For a rapid response on any other Real Estate issues, get in touch

Adrian Collins

The immediate focus for many of our landlord clients over the last month has been the widespread non-payment of rent for the March quarter. We are now seeing clients begin to consider the impact of Covid-19 on lease events more broadly including rent reviews.

The government has announced commercial tenants who are unable to pay rent due to the impact of COVID-19 have protection from forfeiture of their leases until at least 30 June 2020. This article provides a summary of the key points.

On 17th March the Chancellor announced an extended business rates relief to provide support during the current Covid-19 pandemic. The Government has now published the guidance notes to local authorities which set out the parameters for such relief. In quick summary: The guidance applies to England only; The guidance sets out detailed criteria to be eligible for the “Expanded Retail Discount”; The relief will apply to occupied retail, leisure and hospitality properties in the year 2020/21; The £51,000 RV limit will no longer apply; The Government have made an application to disapply the State Aid rules.

We highlight some of the key issues that may arise from a real estate perspective which includes: landlord and tenant considerations; lease termination; lease obligations and consider some practical steps that businesses can take to maintain business resilience in a situation which is rapidly evolving.

For a rapid response on any other Real Estate Disputes issues, get in touch

Andrew Rosling

As businesses struggle to deal with the logistical and business impact of the Coronavirus outbreak and the prudent steps required to contain its spread, a number of high street lenders are offering payment holidays and/or extended credit to their customers. Specialist Lenders may likewise be inclined to help their customers deal with the unforeseen impact of the Coronavirus outbreak by offering them similar flexibility.

For a rapid response on any other Finance issues, get in touch

Amanda Gray

17 April 2020

In this short update, we set out our predictions for how we anticipate each aspect of the UK's £350bn package will be dealt with from a State Aid perspective. While some clarity has emerged since the first version of this update, a number of questions remain. We hope this will help businesses forecast the restrictions which might apply to each of the measures.

Bruce Kilpatrick

What can businesses do to protect themselves? Pin point your critical products and suppliers to prioritise and expose key vulnerabilities in the supply chain. Once identified, consider how reliant are these suppliers on the affected regions? Contingency planning. What are the options to re-address the balance of supply and demand? Can production be scaled back to reflect scarce stock levels? Is there an alternative supplier available? What is the impact on medium-term strategy?

For a rapid response on any other Supply Chain issues, get in touch

Ged Barnes

The Government has announced that commercial tenants who cannot pay their rent due to coronavirus will be protected from eviction as a result of missed rent payments over a period of at least 3 months. Many landlords and tenants are already discussing temporary arrangements to help tenants cope with the impact of Covid-19 on trading.

Lauren Hamilton

Country specific issues:

In addition to other measures such as emergency relief packages for businesses, the German Federal Government works in record time on new laws for the mitigation of the consequences for employees and employers.

In addition to other measures such as emergency relief packages for business, the German Federal Government has implemented in record time a new law for the mitigation of the consequences of the COVID-19 pandemic.

For a rapid response on any other Restructuring issues in Germany, get in touch

Dr. Hubertus Schröder

In the overall effort to reduce the spread of the Covid-19 pandemic within the Sultanate of Oman, the Capital Market Authority (CMA) has issued decision E/25/2020 outlining the 'Rules for Convening General Meetings of Public Joint Stock Companies and Investment Funds through Electronic Means’.

For commercial entities that have been or may be impacted by such disruption, now is a prudent time to consider what avenues of relief may be available in Omani law governed contracts. Namely, the concepts of Force Majeure and Unforeseen Circumstances. Whilst these concepts are often overlooked at the time of contracting, they can have important consequences in times of disruption and turmoil.

For a rapid response on any other Force Majeure issues in Oman, get in touch

Nic Henrikson

The COVID-19 pandemic has presented great challenges to governments and companies all over the world, including in the State of Qatar. The pandemic has impacted companies operating in various industries in Qatar—from events to retail to construction and others. Companies that are now unable to perform their obligations or feel that performing their obligations would be exceptionally encumbering for them are considering their options under their contracts and under the law.

The COVID-19 crisis has created an unprecedented situation whereby employees' rights are rapidly changing. Sometimes, so fast that it is difficult to keep track. This article seeks to give a brief overview of some of the recent directives given by the Ministry of Administrative Development and Labour Affairs (the Ministry) (and further articles will follow should there be further developments). This will be useful for both employees and employers looking to keep track of developments.

For a rapid response on any other Employment issues in Qatar, get in touch

Ben Brown

COVID-19 has created numerous difficulties, not least for parties to contracts associated with events, festivals and other public gatherings that now need to be rearranged or cancelled following government prohibitions on the same.

In this vein the Ministry of Commerce and Industry in Qatar (MOCI) has released a circular concerning concerts, festivals, events and other public gatherings that instructs contracting parties to seek mutual agreements to mitigate the impact of the bans.

For a rapid response on any other Event Contracts issues in Qatar, get in touch

The Addleshaw Goddard Scottish Business Monitor in association with the Fraser of Allander Institute is the first major survey of Scottish businesses since the coronavirus outbreak and identifies the scale of the challenge created by the current crisis as well as the effectiveness of the Government policy measures.

The coronavirus crisis presents unique set of challenges for the development industry with potentially long term implications. A swift and creative approach will be required by the Scottish Government and local authorities to ensure that planning regulatory tools work to support the development industry and ensure wider economic growth.

The Coronavirus (Scotland) Bill was introduced on 31 March and passed stage 3 at a meeting of the Scottish Parliament on 1 April. It will come into force after receiving royal assent and is to be known as the Coronavirus (Scotland) Act 2020 ("the Act"). The Act makes a number of changes to current legislation including laws dealing with evictions from residential tenancies; bankruptcy; termination of commercial leases and the running of the Scottish court system during a global pandemic. The key changes are set out in this briefing note.

The latest guidance from the UK Government does not require construction sites or businesses to close but does require that any employer who has staff on site must ensure that employees are able to follow Public Health England guidance. This includes maintaining a 2 metre distance from others and following hygiene advice. Employees are permitted to travel to and from work, but only where the work absolutely cannot be done from home.

For a rapid response on any other Planning issues in Scotland, get in touch

As both the public and private sectors implement measures to curb the spread and effects of the Coronavirus, a number of businesses are facing increasing difficulties with the performance of their obligations under contracts with customers, suppliers and employees.Whilst the long-term economic effects of the virus are not yet clear, a business' immediate ability to comply with contractual terms should be carefully considered, including whether the pandemic constitutes a force majeure event (FM Event) or gives rise to unforeseen circumstances, both in contract and in law.

For a rapid response on any other Force Majeure issues in Dubai, get in touch

The government's ability to forcibly quarantine anyone with coronavirus and to forcibly send someone to isolation if they pose a threat to public health under the Health Protection (Coronavirus) Regulations 2020 and the power of Local Authorities to apply to a Magistrate for Orders to force site closures under Part 2A of the Public Health (Control of Disease) Act. Contacts: Erin Shoesmith, Adrian Mansbridge

Organisational response strategy (e.g. effective communication to ensure that the message is received without causing undue stress and anxiety, designated point people, Q&A infrastructure, prepared responses and interface with government advice). Contacts: Sarah Harrop, Sungjin Park

Practical implications of the regulation 3 of the Health Service (Control of Patient Information) Regulations 2002 (processing of patient information for the recognition, control and prevention of communicable disease and other risks to public health). Contacts: Erin Shoesmith,Mike O'Connor

State aid – the application of state aid rules in relation to the Government's coronavirus support package for businesses. The Government have now announced support of £330bn to mitigate the impact on the economy. £330bn is being made available in loans, £20bn in other aid. Contacts: Al Mangan, Bruce Kilpatrick

What next? – insights on how Covid-19 may lead to an acceleration in decarbonisation. Contact: Anna Sweeney

Sally Emerton

Our cross-disciplinary team have been supporting clients through a number of key issues arising from COVID-19; below are some of the current talking points:

Regulatory issues

FCA postponing consideration of all non-critical open consultations to 1st October.

Unprecedented measures by FCA to require temporary relief be given to loan, credit card and mortgage borrowers brings its own challenges for firms dealing with their customer base – including changes to systems, websites and staff training. Changes must to be delivered within a demanding timescale, with the added challenge of many implementing these changes working from home. Complex CCA implications within the new legislation, with concerns over longer term consequences. Acute TCF challenges will arise.

Onus on senior managers to ensure appropriate discussion, documentation and oversight of issues around dividend distributions and bonus pool issues.

FCA guidance on SMCR issues including furloughing of senior managers and what happens in the event of COVID-19 illness.

Funding schemes

The Coronavirus Business Interruption Loan Scheme (CBILS) is now available through participating lenders but has raised some concerns including:

Lack of clarity on impact on certain businesses eg those backed by private equity/reliant on shareholder funding/unconnected groups under common ownership.

Type of facilities available dependent upon lender – whilst there may be merits in approaching an existing lender first, however high street banks have been overwhelmed with customer requests and so additional entrants to the scheme may provide well needed alternative sources of emergency funding/agreed principles for intercreditor arrangements between existing and CBILs lenders would help drive efficiencies.

Inconsistencies appearing between different lenders approaches to assessing viability/assessing with reference to profitability over 3 years is acting as a barrier to some applicants.

Unclear how ultimate pricing amongst various accredited lenders will compare.

No scheme currently available for businesses with a £45m+ turnover although there will be soon – likely to involve loans of up to £25m however these are unlikely to be interest free/we will be issuing guidance on that as soon as details are known.

Policyholder Insurance

When does business interruption insurance apply?

Main coverage under these policies is triggered by damage to property although many policies do include extension to cover such as restriction of use of premises, including for notifiable diseases, but it's a complex requirement to satisfy.

Causation and 'wide-area damage' issues are relevant to calculations of lost income / profit.

Credit insurance in light of payment defaults.

Obligations for policyholders to mitigate loss and to notify insurers.

Use of property for different purposes / left unoccupied must be done in compliance with insurance policy terms.

Employment

Various options being implemented by employers including accessing the government's job retention scheme, seconding staff into high demand areas (either internally or to other organisations), salary reductions, reducing working hours/weeks or, in some cases, redundancies.

Simplicity of job retention scheme has raised questions including issues around consent and the mechanics of obtaining it, annual leave and TUPE transfers. These are slowly getting addressed by the Treasury.

Reputational considerations should be central to any decision making as evidenced by recent high profile positive and negative press in relation to employer approaches.

Disputes

Forbearance including future disputes around terms. Importance of educating those who are speaking to customers re what to say and how to say it – defence in future claims will rest on those individual conversations.

s75 CCA claims – not always straightforward especially in times of mass receipt of claims. Importance of putting in a process to track, assessing and categorising claims in a consistent way and positioning yourself to deal with next steps.

Andrew Rosling

Managing your people

The government's ability to forcibly quarantine anyone with coronavirus and to forcibly send someone to isolation if they pose a threat to public health under the Health Protection (Coronavirus) Regulations 2020 and the power of Local Authorities to apply to a Magistrate for Orders to force site closures under Part 2A of the Public Health (Control of Disease) Act. Contacts: Erin Shoesmith, Adrian Mansbridge

Organisational response strategy (e.g. effective communication to ensure that the message is received without causing undue stress and anxiety, designated point people, Q&A infrastructure, prepared responses and interface with government advice). Contacts: Sarah Harrop, Sungjin Park

State aid – the application of state aid rules in relation to the Government's coronavirus support package for businesses. The Government have now announced support of £330bn to mitigate the impact on the economy. £330bn is being made available in loans, £20bn in other aid, a business rates holiday and grants for retailers and pubs. Contacts: Al Mangan, Bruce Kilpatrick

What next? – insights on how Italian R&C businesses are managing the crisis and rapid legislation change. Contact: Andrew Rosling

Rail and Urban Transit (including electric vehicles)

Rail freight workers designated as key workers – what does this mean in practice?Contact:Martin Fleetwood

Bus package– was announced on Thursday 2 April. New funding of up to £167 million will be paid over 12 weeks under the new COVID-19 Bus Services Support Grant. As a condition of the funding, bus operators will be required to maintain necessary services at a level which is sufficient to meet much reduced demand, but also to allow adequate space between passengers on board. This is expected to be up to 50% of normal service levels. The Department is developing guidance for Local Transport Authorities about supporting bus services (nothing as yet). The Bus Services Operator Grant is still being paid even if services had reduced.Contacts: Paul Hirst, Sara Gilmore

As COVID 19 and the ensuing lockdown continues to pose new challenges for insurance companies and policyholders, the FCA has announced a series of initiatives, proposed measures and guidance for firms and consumers.

Our panel of experts will take stock of these developments as well as some covering some additional market topics.

Watch the webinar

Webinar: Financial Services COVID-19 Legal & Market Insight

Webinar 1

Get a first-hand insight into: Government initiatives; Workforce issues; Premises and physical infrastructure; Supplier management; Customers and conduct; Governance and directors' duties - and what they mean for your business.

Webinar 2

In the second webinar of the series, our panel of experts explores the impact of the pandemic on asset managers, addressing, in particular: Regulatory issues; ESG considerations; Implications under SMCR; Operational resilience.